Wisconsin native, conservative critic of everything.
"Once abolish the God, and the government becomes the God." ---G K Chesterton
"The only objective of Liberty is Life" --G K Chesterton
"Fallacies do not cease to be fallacies because they become fashions" --G K Chesterton
"A man can never have too much red wine, too many books, or too much ammunition." -- Rudyard Kipling

Thursday, May 14, 2009

Paulson DID Force the Banks Into TARP

Some LeftOWackies insisted that 'nobody forced the banks to take TARP money.'

Former Treasury Secretary Henry Paulson said nine U.S. banks would have to accept $125 billion in government investments or be forced to by regulators, according to a memo prepared for a meeting with the lenders’ chief executive officers in October.“If a capital infusion is not appealing, you should be aware that your regulator will require it in any circumstance,” the one-page list of talking points said. “We don’t believe it is tenable to opt out because doing so would leave you vulnerable and exposed.”

Yes, at the time (October '08) I thought that purchasing bad loans would be helpful. And yes, it was the Bush Administration.

But Paulson re-directed the funds to 'capital purchases,' unilaterally. His bad, not mine. Bush/Paulson laid the groundwork for Obama's ominous GM/Chrysler takeovers, and for his 'compensation' regime...something for which Bush should be ashamed.